Instructions

ZOOM IN by clicking on the page. A slider will appear, allowing you to adjust your zoom level. Return to the original size by clicking on the page again.

MOVE the page around when zoomed in by dragging it.

ADJUST the zoom using the slider on the top right.

ZOOM OUT by clicking on the zoomed-in page.

SEARCH by entering text in the search field and click on "In This Issue" or "All Issues" to search the current issue or the archive of back issues
respectively.
.

PRINT by clicking on thumbnails to select pages, and then press the
print button.

SHARE this publication and page.

ROTATE PAGE allows you to turn pages 90 degrees clockwise or counterclockwise.Click on the page to return to the original orientation. To zoom in on a rotated page, return the page to its original orientation, zoom in, and
then rotate it again.

CONTENTS displays a table of sections with thumbnails and descriptions.

ALL PAGES displays thumbnails of every page in the issue. Click on
a page to jump.

Other key motivations for Australian institutions
considering ETFs according to VanEck’s survey
are ease of market access (93 per cent), ease of
trading (87 per cent) and liquidity management
(83 per cent).
Since ETFs first listed in the early 1990s, the
growth of the global ETF industry has been
spectacular. Ten years from now it is likely the
ETF industry will still be reaching new heights.
Constant innovation in the sector is seeing the
industry progressively develop and Australian
institutional usage is a significant part of the
Australian growth story. While ETFs currently
account for little more than one per cent of the
Australian $2.2 trillion superannuation industry,
VanEck’s survey suggests this will increase
significantly in the near future.
Arian Neiron is managing director of VanEck
– Australia.
The Australian equity market is one of the most concentrated equity markets in the developed
world. The S&P/ASX 200 is the most commonly used market capitalisation index by Australian
equity active managers however, the index is dominated by the top 10 companies which
comprise of over 55 per cent of the index, including the big four banks.
The VanEck Vectors Australian Equal Weight ETF (ASX:MVW) is a smart beta ETF. It tracks
the MVIS Australia Equal Weight Index which covers 90 per cent of the largest and most
liquid Australian equities then equally weights all the stocks in its index ensuring that no one
company or sector dominates.
In 2016, Morningstar reported that MVW returned 18.16 per cent, outperforming the S&P/
ASX 200 by 6.37 per cent. The MVW’s Index has demonstrated outperformance in 11 of the
past 14 calendar years.
1.24
1.34
1.33
0.77
1.1
0.33
0.46
0.4
0.24
0.33
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
Australian Equity
General
Australian Equity Mid
and Small-Cap
International Equity
General
Australian Bonds
Australian Equity A-REIT
Open-Ended Funds ETFs
0.91
0.88
0.93
0.53
0.76
Average max mgmt fee (%)
Open-ended active management fees vs ETF management fees
Source: S&P Jones Indices LLC, Morningstar. Data as of Sept, 30, 2016. Index and leveraged funds are included from the open-ended funds
universe. Figures are equal averages of funds’ and ETFs’ latest maximum management fees. Chart is provided for illustrative purposes.
Superfunds June 2017